Apple Limiting Employee Travel to China Amid Coronavirus Outbreak, Working to Avoid Supply Shortages

During today's earnings call, Apple CEO Tim Cook commented on the coronavirus outbreak in China, which investors fear could potentially impact Apple's business, affecting production of both current iPhones and the new low-cost iPhone that's on the horizon.

Cook said that Apple is donating to China to help with the outbreak and working with partner companies.

We're donating to groups that are working to contain the outbreak. We're working closely with our Apple team members in the affected areas, and our thoughts are with all of those in the region.

In an interview with CNBC, Cook confirmed that employee travel has been restricted to "business critical travel" only as of last week, and employees in Wuhan and across China are receiving care kits from Apple.

"We're restricting travel to business critical travel. For employees that are in the Wuhan area, we are providing care kits and supplying them across our employee population in China as well.

Cook said that Apple's decision to set next quarter guidance with a range of $4 billion is reflective of the coronavirus outbreak and the "uncertainty around that." Apple's guidance for Q2 2020 is $63 to $67 billion, a larger range than normal.

The situation is still emerging, said Cook, and Apple is monitoring the situation closely and gathering data points.

According to Cook, supplier factories in wider China are opening late after Chinese New Year, on February 10, which Apple is working to manage. Apple does have suppliers in the Wuhan area, but all of these suppliers have alternate suppliers, and Apple is working to ensure good supplies. Apple has accounted for the delayed startup with its larger range of outcomes.

In its retail stores, Apple is limiting hours, checking employees, and sanitizing its stores regularly. One store has also been shut down for the time being. Apple's retail sales have slowed due to virus concerns, but this is accounted for in Apple's guidance numbers for Q2 2020.

Top Rated Comments

(View all)
Avatar
9 weeks ago


Just remember...

The flu infected 42 million and killed 62,000 in 2019. The coronavirus has infected 9000 and killed 81 people...

Media: CORONAVIRUSSSSSS!!!!!!!

pweicks,
Let me introduce you to basic mathematics.
62,000/42,000,000 = .00147%
81/9000 = .009% (Almost 1%)
Should Cooronavirus spread like the flu in 2019 then that is approximately 420,000 dead for every 42 million.
If it spread like the Spanish Flu of 1918 that one percent would be approximately 25.4 million dead.

Numbers, it is all relative anyway right?
Score: 18 Votes (Like | Disagree)
Avatar
9 weeks ago


Just remember...

The flu infected 42 million and killed 62,000 in 2019. The coronavirus has infected 9000 and killed 81 people...

Media: CORONAVIRUSSSSSS!!!!!!!


The flu kills a lot more people than Ebola. Therefore, we should not care about Ebola and stop any quarantine or vaccine research?
Score: 8 Votes (Like | Disagree)
Avatar
9 weeks ago


That’s cool dude. Just remember the media is out to make money, not to tell you the news

I would agree with that, wholeheartedly, but your original point remains a failure.
Score: 6 Votes (Like | Disagree)
Avatar
9 weeks ago


Just remember...

The flu infected 42 million and killed 62,000 in 2019. The coronavirus has infected 9000 and killed 81 people...

Media: CORONAVIRUSSSSSS!!!!!!!


There was a time when the Black Plague had only killed 81 people. I wonder if someone stood up then and said "but the flu kills a lot more people!" And no, I'm not saying the current virus is anywhere as deadly as the plague, although Corona viruses mutate rapidly and MERS had a near 35% mortality rate.
Score: 5 Votes (Like | Disagree)
Avatar
9 weeks ago
Just remember...

The flu infected 42 million and killed 62,000 in 2019. The coronavirus has infected 9000 and killed 81 people...

Media: CORONAVIRUSSSSSS!!!!!!!
Score: 4 Votes (Like | Disagree)
Avatar
9 weeks ago
"We're restricting travel to business critical travel. For employees that are in the Wuhan area, we are providing care kits and supplying them across our employee population in China as well."

Good idea, since no one can get people out, due to lock-down, which is always the right thing to do anyway.

I'm still kinda impressed "Australia is OK" because symptoms don't show up always either on first attempt.
Score: 2 Votes (Like | Disagree)

Top Stories

Seemingly Unreleased Version of Logic Pro X With Live Loops Appears on Apple's Education Site [Updated]

Sunday March 29, 2020 7:23 am PDT by Hartley Charlton
Update: Apple has replaced the Logic Pro X image with an older version. Original story follows. A seemingly unreleased version of Logic Pro X has appeared on Apple's education site, as spotted by a Reddit user. The image from Apple's education products page shows a 16-inch MacBook Pro running Logic Pro X, but with a familiar interface that looks extremely similar to GarageBand's Live Loops ...

Zoom Updates iOS App to Stop Sending Data to Facebook

Friday March 27, 2020 5:35 pm PDT by Juli Clover
Zoom, a video conferencing app that many people are using at the current time to keep in touch with coworkers while working from home, was sending data to Facebook without disclosing the data sharing to customers. As of today, Zoom has updated its iOS app to remove the SDK that was providing data to Facebook through the Login with Facebook feature, according to Motherboard, the site that...

Apple Suppliers Worried About iPhone Demand, Production Ramp-Up for New iPhones Reportedly Postponed

Friday March 27, 2020 5:56 pm PDT by Juli Clover
Most of the factories in China that supply devices and components to Apple are back to churning out products, but Apple suppliers are said to be worried about how much demand there will be for the current iPhone models and the new iPhones expected in the fall. According to Reuters, a senior official at one of Apple's major supply companies said that orders for quarter ending in March are...

2020 iPad Pro Teardown Provides Closer Look at LiDAR Scanner and Confirms Incremental Update

Saturday March 28, 2020 9:56 am PDT by Hartley Charlton
iFixit today shared a video teardown of the new iPad Pro, which Apple unveiled earlier this month. iFixit found that most of the internals of the 2020 iPad Pro are the same as the 2018 model, confirming that the device is a relatively incremental update. The most notable new feature seen inside the new iPad Pro was the LiDAR scanner, which measures the distance to surrounding objects up...

Apple Watch Series 6 Could Feature Touch ID Fingerprint Sensor, Pulse Oximetry and Sleep Tracking Support

Friday March 27, 2020 11:28 am PDT by Juli Clover
The upcoming Apple Watch Series 6 set to be released this fall could include a Touch ID fingerprint sensor built into the crown of the device, according to Israeli site The Verifier, which cites "senior sources" who have worked with its staff for a "number of years" as the source of the rumor. It's not clear how the alleged Touch ID fingerprint sensor would be implemented, as the Digital...

Bloomberg: Apple's 5G iPhone Still on Schedule for Fall Launch, But Future Products Could Be Delayed

Monday March 30, 2020 2:40 am PDT by Tim Hardwick
Apple's 5G iPhone is still on track to launch within the company's typical annual fall release schedule, according to a new Bloomberg report on filed on Monday. Signs are that Apple's Chinese-centric manufacturing -- of which Hon Hai is the linchpin -- is slowly getting back on track. The next iPhones with 5G wireless capabilities remain on schedule to launch in the fall, partly because mass...

Kuo: Apple to Launch Several Macs With Arm-Based Processors in 2021, USB4 Support Coming to Macs in 2022

Thursday March 26, 2020 8:19 pm PDT by Joe Rossignol
Apple plans to launch several Mac notebooks and desktop computers with its own custom designed Arm-based processors in 2021, analyst Ming-Chi Kuo said today in a research note obtained by MacRumors. Kuo believes that Arm-based processors will significantly enhance the competitive advantage of the Mac lineup, allow Apple to refresh its Mac models without relying on Intel's processor roadmap,...

Top Stories: Hands-On With 2020 iPad Pro and MacBook Air, iOS and iPadOS 13.4 Released, iPhone 12 Delay?

Saturday March 28, 2020 6:00 am PDT by MacRumors Staff
After last week's flurry of product launches, Apple's new iPad Pro and MacBook Air have started to make their way into consumers' hands, and we've gone hands-on with both of them this week. Apple this week also released iOS and iPadOS 13.4 (as well as macOS, watchOS, and tvOS updates) with a number of new features and improvements. Subscribe to the MacRumors YouTube channel for more videos. ...

Deals: Huge Refurbished iPhone Sale Discounts iPhone 7, 8, X, XR, and XS (From $120)

Friday March 27, 2020 5:47 am PDT by Mitchel Broussard
Woot is back today with a big sale on refurbished iPhones, including markdowns on the iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus, iPhone X, iPhone XR, iPhone XS, and iPhone XS Max. Note: MacRumors is an affiliate partner with Woot. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. As with every Woot purchase, those...

Apple Releases ProRes RAW Beta for Windows

Monday March 30, 2020 9:33 am PDT by Juli Clover
Apple today released ProRes RAW for Windows in a beta capacity (via Mark Gurman), with the software designed to allow ProRes RAW and ProRes RAW HQ video files to be watched in compatible applications on Windows machines. According to Apple, the software will let the files be played within several Adobe apps: Adobe After Effects (Beta) Adobe Media Encocder (Beta) Adobe Premiere...